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Barça’s Neymar nears trial over transfer corruption case

The prospect of Barcelona superstar Neymar standing trial moved closer on Monday as a Madrid judge accepted an appeal by prosecutors for corruption charges to be brought against the Brazilian, a court filing said.

Barça's Neymar nears trial over transfer corruption case
Neymar is also facing tax fraud charges in Brazil. Photo: AFP

The decision overturns a ruling in July that said irregularities detected in the Brazilian's 2013 transfer to Barcelona were an issue for a civil court, not a criminal one.

Neymar's parents, Barcelona president Josep Maria Bartomeu and his predecessor Sandro Rosell – who resigned over the scandal in 2014 – also face corruption charges.

Both the defence and prosecution have 10 days to present their arguments before a final decision over whether the case will go to trial will be made, a statement from Spain's National Court said.

Should he be found guilty, Neymar, 24, faces a prison sentence of between six months and two years and a heavy fine.

Barcelona said Monday it would appeal the judge's decision, with which it expressed its “surprise and total disagreement… particularly given that the same magistrate decided to dismiss the case for all the defendants last July.”    

According to the judge's findings, a pre-contract agreement between Neymar and Barcelona by which the player received €40 million ($44 million) in 2011 to ward off competing clubs for his signature “altered the free market of football transfers.”

Bartomeu and Rosell also stand accused of fraud over the transfer.   

The case initiated with a complaint from Brazilian investment company DIS, which owned 40 percent of Neymar's sporting rights at the time of his transfer from Santos.

Barça initially announced the cost of the move at €57.1 million, 17.1 million of which was paid to Santos with the remaining 40 million paid to N&N, a company owned by Neymar's family.

However, Spanish authorities believe the real cost escalated to 83.3 million.

DIS received 6.8 million euros, 40 percent of the fee paid to Santos.    

The company believe it was cheated of its real share because part of the transfer fee was concealed by Barcelona and Neymar.    

Moreover, DIS also argued the pre-contract agreement between Neymar and Barça impeded other clubs from making offers for the player, affecting the value of the transfer fee.

The decision is another blow to the image of the Spanish champions and the player himself.

Barça hoped to bring an end to the murky affair when the club agreed to pay a €5.5-million fine in a deal with prosecutors in June to settle a separate case and ensure the club avoided trial on tax-evasion charges over the transfer.

Meanwhile, Neymar also faces tax evasion charges in Brazil.

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Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

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